CBN Approves $340m, CNY69m For Agric, Raw Materials

Posied to remain true to its promises on foreign exchange,the Central Bank of Nigeria (CBN), said it has provided 340 million dollars and 69 million Chinese Yuan (CNY) to customers seeking foriegn exchange in the agricultural and raw material sector.

The acting Director, Corporate Communications, Mr Isaac Okorafor, said the sales in the Chinese Yuan was done through a combination of spot and 15-day tenor.

He said the Chinese Yuan was made available only to customers with Renminbi denominated Letters of Credit for agriculture as well as raw materials and machinery.

According to him the availability of Renminbi would eventually ease pressure on the Nigerian foreign exchange market.

He said the current stability in the foreign exchange market to the continued intervention of the CBN as well as the sustained increase in crude oil prices in the international market.

He said the CBN is committed to ensuring all sectors continued to enjoy access to foreign exchange required for business, whether in US dollars or Chinese Yuan, the CBN spokesman said in a statement.

The apex bank had on July 20, announced the commencement of its intervention in the sale of foreign exchange in CNY.

The sales marked the commencement of the Bilateral Currency Swap Agreement (BCSA) signed with the People’s Bank of China (PBoC) on April 27, 2018.

At the flagged off CBN had explained that there would be no predetermined spread on the sale of Foriegn Exchange Forwards by authorised dealers to end-users under the special sales window.

Also, authorised Dealers would be allowed to earn not more than 50 kobo per CNY on a customers’ bids.